October 13, 2015 - MDT Pro Tips A.M.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
Current Positions
GOGO? Long at $19.93
Premium collected - $1.25
NCR Long Jan 15 $27 Call
NCR Short Jan 15 $32 Call
Net Debit - $0.60
X Long at $14
Short September 25th $14 Call @ $.54
ASNA Long at $14.20
Premium collected - $.30
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I appreciate those that emailed me yesterday.? I will see about adding a PDF to the site each month with the buybacks.
Also, there were a few great suggestions for tomorrow's webinar, which I will try to address.
As I mentioned yesterday, Friday was a doji bar, which means indecision.? Yesterday's price action was another narrow range day.
This action indicates that buying is waning.
And pre open, the markets are trading to the downside.
This could be the start of the pullback I mentioned yesterday.
This week, a number of the major banks report earnings, including Goldman Sachs, which reports Thursday.
Netflix reports tomorrow after the close.
Here are the key levels for the markets.
Stocks...
?
VIX:?
Minor level - 29.68
Minor level - 26.56
Major level - 25.00
Minor level - 23.44
Minor level - 20.31 *
Major level - 18.75
Minor level - 17.18 *
Major level - 12.50
Yesterday, the VIX closed under 17.18, at 16.17.
At this point, I would expect higher levels to act as resistance.
18.75 and 20.31 should be the closest resistance levels.
When the VIX reverses to the downside, the markets should head up.
S & P 500 Cash Index:?
Major level - 2,062.50
Minor level - 2,039.12 *
Major level - 2,031.30
Minor level - 2,007.82 *
Major level - 2,000.00
Minor level - 1,976.62
Major level - 1,968.80
The active objective should be 2,031.30.? I would expect 2,007 and 2,000 to act as support.
Nasd 100 (QQQ):?
Major level - 109.38
Minor level - 108.60
Minor level - 107.03 *
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Two closes above 107.03 and the target is 109.38.
Lower levels should act as support.
Support should be at 105.46 and 104.
TLT:?
Major level - 128.13
Minor level - 125.78
Major level - 125
Minor level - 124.22
Minor level - 122.66 *
Major level - 121.88
Minor level - 121.09
Minor level - 119.53
Major level - 118.75
The TLT closed at 123.21.? A close today above 122.66 and the TLT should move up to 125.
121.88 remains strong support.
GLD:
Minor level - 113.28
Major level - 112.50
Minor level - 110.16
Major level - 109.38 *
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
The objective should be to 112.50.
A close above 112.50 would be bullish.?
If the GLD fails here, it will retest the lower level of the trading range.
XLE:
Major level - 71.88
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.97 *
Minor level - 66.41
Major level - 65.63
Minor level - 64.84
Minor level - 63.28
Major level - 62.50
The objective should be to 71.88.? 67.97 should be support.
Apple:
Major levels for Apple are 118.75, 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?
Apple took out 112.50 yesterday, with a high of 112.75.
To move up, Apple will need two closes above 114.06.
Two closes under 110.93 and the objective is 106.25.
Apple remains in a downtrend on the daily chart and an uptrend on the 60 minute chart.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, SRCL, NKE, STZ, HD, CLB, CLX, TSO, MCD, DPS, CRM, VRSN, JOE, CNO
Bearish Stocks: BIIB, ILMN, JAZZ, VRTX, MELI, ABBV, ANIP, GPRO, DK, CFG, PVH, UTHR
Be sure to check earnings release dates.